2026-09-18 · BESS India · Coal India Tenders · Pumped Hydro Storage · CERC Tariff
India's BESS Momentum Builds Amid Tender Surge, Rising Costs and Pumped Hydro Push
H1 2026 battery storage capacity jumped 84% YoY as Coal India floats fresh gigawatt-scale tenders, manufacturers scale up, and CERC discovers a benchmark tariff—even as industry warns of cost pressures and stalled pumped hydro policy.
- India's battery storage capacity grew 84% YoY in H1 2026, with 8.2 GWh added in the period [3][4]
- Coal India is emerging as a major BESS demand driver, tendering 80 MW/320 MWh in Odisha (multiple listings) and 90 MW/340 MWh via Cochin Shipyard [6][9][10][11][14]
- Manufacturing capacity is scaling with Premier Energies-RCT's 12 GWh Telangana plant and Exide's European expansion via ExCom [5][8]
- CERC adopted a Rs 3.12-3.13/kWh tariff for SECI's 1,200 MW solar-plus-storage (3,600 MWh) project, setting a bankability benchmark [16][17]
- Saur Energy warns rising input prices could hit India's BESS pipeline just as pumped hydro's 288 GW potential remains stuck without policy reform [1][13][19]
Tender Pipeline Accelerates, Led by PSUs
India's battery storage capacity rose 84% year-on-year in H1 2026, with 8.2 GWh added in six months, signaling accelerating grid-scale adoption [3][4]. Coal India Limited has become an unexpected but significant demand driver, floating an 80 MW/320 MWh standalone BESS tender in Odisha—reported across multiple outlets—alongside a separate 90 MW/340 MWh project tendered jointly with Cochin Shipyard [6][9][10][11][14]. These PSU-backed tenders suggest diversification of BESS offtake beyond traditional DISCOM and SECI-led procurement. Meanwhile, municipal-level activity is also picking up, with Ahmedabad's civic body floating a solar-plus-storage tender, indicating storage is now entering sub-national and urban infrastructure planning [12]. The breadth of buyers—from coal PSUs to city corporations—points to storage moving from pilot to mainstream procurement across India's power ecosystem.
Manufacturing Capacity Scales Up
Domestic and international players are ramping up battery manufacturing to meet anticipated demand. Premier Energies and RCT India announced plans for a 12 GWh battery storage facility in Telangana, a significant addition to India's cell and pack manufacturing base [5]. Separately, Exide India partnered with Germany's ExCom to expand its industrial battery business across the European Economic Area, signaling Indian manufacturers' ambitions beyond domestic markets [8]. On the deployment side, Solaryaan launched a BESS product targeted at the commercial and industrial (C&I) segment, addressing a market segment distinct from utility-scale procurement [7]. Together, these developments reflect a maturing ecosystem where manufacturing, C&I applications, and utility tenders are advancing in parallel, though the report set gives limited detail on capacity timelines or investment figures for these announcements.
Pumped Hydro Policy Push Resurfaces
The International Hydropower Association's Delhi Declaration renewed calls for a policy overhaul to unlock India's estimated 288 GW pumped hydro storage (PSP) potential, arguing current frameworks are insufficient to attract investment [1]. This was echoed by industry leaders separately urging the government to remove barriers to PSP development [19]. Alongside this, commentary highlighted distributed energy storage as a potential 'next big cleantech opportunity' for India, suggesting policymakers and investors are increasingly viewing storage—both centralized pumped hydro and distributed battery systems—as complementary rather than competing solutions [2]. However, the headlines provide no specifics on proposed regulatory changes, incentive structures, or timelines, leaving the practical path to unlocking PSP capacity still undefined despite the renewed advocacy.
Cost Pressures Meet Tariff Benchmarks
Even as deployment accelerates, Saur Energy reported that India's BESS pipeline could be hit as battery prices rise, a warning that comes despite otherwise strong sector momentum [13]. This tension is notable alongside CERC's adoption of a Rs 3.12-3.13/kWh tariff for SECI's 1,200 MW solar-plus-storage project with 3,600 MWh of storage—one of the lowest tariffs discovered for a solar-storage hybrid in India to date [16][17]. The juxtaposition suggests recently bid projects may have been priced before the reported cost increases, raising questions about whether future tenders can sustain similarly competitive tariffs. No further detail is available on the magnitude or drivers of the price increase, but the timing is a signal worth monitoring for upcoming project economics.
So what: Developers should lock in supply contracts early given signaled price pressure, while lenders can use CERC's Rs 3.12-3.13/kWh benchmark to underwrite future solar-storage hybrids. DISCOMs and PSUs diversifying into BESS tenders (Coal India, municipal bodies) expand the demand base, but pumped hydro's stalled policy reform means near-term storage growth will remain BESS-dominated.
Listen or watch today's brief
Recorded 18 Sept 2026, 09:11 am ISTVideo brief
Sources (22)
- [1] IHA’s Delhi Declaration calls for policy overhaul to unlock India’s 288GW pumped hydro energy storage potential - Energy-Storage.News — Energy-Storage.News
- [2] Why Distributed Energy Storage Could Become India’s Next Big Cleantech Business Opportunity - Energetica India Magazine — Energetica India Magazine
- [3] India’s Battery Storage Capacity Up 84% YoY In H1 2026 - TaiyangNews — TaiyangNews
- [4] India adds 8.2 GWh battery storage capacity in H1 2026: Report - ET EnergyWorld — ET EnergyWorld
- [5] Premier Energies and RCT India plan 12 GWh battery storage facility in Telangana - Prop News Time — Prop News Time
- [6] Coal India Limited issues 80 MW / 320 MWh BESS project in Odisha - Saur Energy — Saur Energy
- [7] Solaryaan launches battery energy storage system for C&I sector - T&D India — T&D India
- [8] Exide India partners with Germany’s ExCom to expand industrial battery business across the EEA - pv magazine India — pv magazine India
- [9] Coal India & Cochin Shipyard Tender 90 MW/340 MWh BESS - TaiyangNews — TaiyangNews
- [10] Coal India Tenders 80 MW/320 MWh BESS Project in Odisha - mvapulse.com — mvapulse.com
- [11] Coal India Floats Tender For 80 MW/320 MWh Standalone BESS Project In Odisha - SolarQuarter — SolarQuarter
- [12] Ahmedabad Municipal Body Floats Tender for Solar-Plus-Storage Project - Mercomindia.com — Mercomindia.com
- [13] ISRO's URSC invites bids for flight solar panel fabrication and testing - Solarbytes — Solarbytes
- [14] India's BESS Pipeline To Be Hit, As Prices Rise - Saur Energy — Saur Energy
- [15] Coal India Tenders 80 MW/320 MWh Battery Storage Projects in Odisha - Mercomindia.com — Mercomindia.com
- [16] Juniper Green Energy Completes 75 MW Hybrid Project, Operational Capacity Reaches 2,725 MWp - sahi.com — sahi.com
- [17] Opinion | US Has Institutionally Weaponised India's Russia Oil Dependence. Can New Delhi Cope? - NDTV — NDTV
- [18] Oil be damned! US Congress arms trigger-happy Trump with tariff gun, putting India and China in crosshair - The Times of India — The Times of India
- [19] CERC Adopts Tariff for SECI’s 1,200 MW Solar-Plus-Storage Project - Mercomindia.com — Mercomindia.com
- [20] CERC Adopts INR 3.12–INR 3.13/kWh Tariffs For 1,200 MW Solar Projects With 3,600 MWh Energy Storage - SolarQuarter — SolarQuarter
- [21] Centre-state meet to discuss GST 2.0 impact, Viksit Bharat roadmap - business-standard.com — business-standard.com
- [22] Industry leaders call on Indian Government to unlock India’s pumped storage potential - energyglobal.com — energyglobal.com